Nonlinear Dynamics of Interest–Investment–Price Index interaction.

SANJAY KUMAR DAS; Manmohan Das

doi:10.26713/cma.v17i3.3592

Authors

SANJAY KUMAR DAS Handique Girls' College, Guwahati,Assam,India https://orcid.org/0009-0001-7710-4436
Manmohan Das Department of Mathematics, Bhattadev University, Bajali, Assam, India

DOI:

https://doi.org/10.26713/cma.v17i3.3592

Keywords:

Dynamical system, financial dynamics, Stability, Bifurcation, Time series

Abstract

In this article we develop a new mathematical framework to investigate some new possibilities for a financial system associated the rate of interest investment demand and price index. The proposed financial system consisting three coupled ordinary differential equations with the above three state variables. The equilibria of the system are investigated and also the stability of the system at existing equilibria is examined. In addition to this the conditions of occurrence of Hopf Bifurcation are also investigated and derived analytically. The theoretical analysis is validated numerically and found to be in good agreement with the analytical predictions and highlight the capability of the model to capture endogenous macroeconomic fluctuations.

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